The first month of the year saw a sharp fall in Bitcoin prices from $109K to $75K, only to find firm support at the end of March. After a final bearish test above $75K on April 9, the bulls staged a comeback, ending April above $95K.
A pattern familiar to many crypto analysts appeared in Bitcoin’s price rebound after the post-coronavirus sell-off. Major players in the Bitcoin market seem to be drawing parallels between the present situation and the period when former President Trump started pressuring Fed Chair Jerome Powell for interest rate cuts.
The last time this happened, Bitcoin’s market price ballooned 12-fold in 24 months. This translates to an average annualized ROI of 550% from 2019 to 2021, dwarfing the S&P 500 Index’s average yearly ROI of 10% since 1957.
Given this, it’s no surprise that institutions are highly optimistic about Bitcoin. Even EuroPac’s Peter Schiff, a notorious critic of Bitcoin, has had a change of heart, promising never to sell any Bitcoin donated to him.
Below are four reasons why Bitcoin’s future looks promising in May:
1. Wall Street’s Bitcoin ETFs saw an insatiable appetite in April. In fact, Bitcoin ETFs recorded nearly $4 billion on 8 consecutive days of inflows. This surge was driven by institutional investors, signaling a strong demand.
2. Semler Scientific, a healthcare tech company, purchased 165 BTC for around $15.7 million. This follows the trend of corporations stockpiling Bitcoin, limiting the supply available on exchanges and pushing the price up further.
3. Arizona has moved to establish a state Bitcoin reserve, following the White House’s initiative to establish a national reserve. This is the first state legislative approval to establish a BTC reserve, potentially sparking a trend in other states.
4. Bitcoin whales have been on a buying spree, purchasing $4 billion in the last two weeks of April. This strong support from both Wall Street institutional buyers and Internet retail buyers bodes well for Bitcoin’s future.
